(MENAFN) Based on a report from S&P Global Ratings, Sukuk issuance volumes are not going to increase a lot during this year as international interest rates jump and financing necessities for Gulf economies.
According to S&P report, international sukuk issuance dropped slightly to around USD147.4 billion from USD148.4 billion two years ago.
Central bank interest rates are likely to react to changes from the US Federal Reserve, especially those in the Gulf where currencies are attached to the dollar.
The report also mentioned, “amid a tight job market, accelerated inflation readings over the past few months, and increasingly hawkish forward guidance from the US Federal Reserve, we now expect three rate hikes in 2022, with the first expected in May.”
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